27 Mar The accounting cycle and journal entries

You will answer questions about the accounting cycle and prepare general journal entries.

Introduction

Have you looked at the balance sheet or income statements of companies like Apple, Microsoft, Google, Amazon, or Facebook? What is their cash situation? How much profit are they making? What is their stock price? Investors and market participants examine such information on a regular basis through a company’s financial statements.

When an organization reports its financial results to the world, external users look to see if the organization made any money during its most recent year. Will the assets the organization owns, minus the debts it owes, result in any leftovers that can be put back into the organization to make more money, or reward the shareholders for their investment in the organization?

You have studied the business language of accounting and financial statements, and now you will explore the accounting cycle and its first few steps, including:

Recording of business transactions.

Using general journal entries.

Learning how a trial balance is used to prove the work completed in the first few steps in the accounting cycle.

Overview

In this assessment, you are required to answer questions about the accounting cycle and prepare general journal entries.

Preparation

Use the Assessment 2 Template [XLSX] Download Assessment 2 Template [XLSX]to complete this assessment.

Review all suggested readings.

Note: Accuracy in accounting is paramount. Take your time and double-check your work for errors or omissions.

Instructions

Step 1: Describe the accounting cycle with specified details.

Step 2: Create the required journal entries.

Complete both parts using the Assessment 2 Template.

Part 1: Accounting Cycle

Respond to the short-answer questions found in the template on the Accounting Cycle tab using proper grammar and language.

Part 2: Journal Entries

Prepare specified journal entries.

Save and submit your completed template in the courseroom.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

Competency 1: Define accounting terminology and its application to accounting principles.

Describe the accounting cycle with specified details.

Competency 3: Prepare financial statements from accounting system data.

Create required journal entries.

Competency 4: Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.

Convey clear meaning through appropriate word choice and usage.